Ooma
| Company type | Public |
|---|---|
| Industry | Telecommunications |
| Founded | 2004 |
| Founder | Andrew Frame, Michael Cerda |
| Headquarters | Silicon Valley, California , United States |
Area served | United States |
Key people | Eric Stang (CEO) |
| Products | Voice over IP (VoIP) services, Ooma Telo, Ooma Office, Ooma Office Pro, Ooma Enterprise, Ooma AirDial |
| Revenue | $256.9 million (FY ending January 31, 2025) |
| −$6.9 million (FY ending January 31, 2025) | |
Number of employees | 510 (2025) |
| Website | ooma |
Ooma, Inc. is a telecommunications firm based in the Silicon Valley region of California, publicly traded in the United States. The company specializes in providing communication solutions such as Voice over IP (VoIP) services tailored for residential, commercial, and mobile users.
History
Established in 2004 by Andrew Frame, formerly of Cisco Systems, and Michael Cerda, Ooma initially introduced a "VoIP in a box" product that utilized peer-to-peer VoIP technology to facilitate calls through other Ooma subscribers' landlines. This peer-to-peer feature was discontinued in 2008 due to concerns regarding user privacy.
Early accolades for the company include the DigitalLife Best of Show award received in 2007 for its Ooma Hub device. Leadership changes occurred in 2009 when Eric Stang took over as CEO from Frame. That same year, Ooma released the Telo system, which provided unlimited calling and caller identification features, earning recognition from Internet Telephony and TMC Labs Innovation Awards. The company continued to innovate with products like the HD2 handset and Linx adapter in 2012, both earning Internet Telephony Product of the Year honors, followed by the HD3 handset in 2017 and the Telo 4G system launched in 2019.
In an effort to broaden its market footprint, Ooma collaborated with West Valley City, Utah in 2014 to deliver complimentary telephone services over fiber optic networks. By 2015, it was acknowledged by both the San Francisco Business Times and Silicon Valley Business Journal as one of the fastest expanding private enterprises.
Ooma has strategically grown its business communications offerings through acquisitions, including security camera startup Butterfleye in 2017; UCaaS companies Voxter in 2018, Broadsmart in 2019; and OnSIP in 2022. Support for Butterfleye cameras was discontinued in 2021. The latest acquisition was telecommunications platform provider 2600Hz in October 2023.
For the fiscal year ending January 31, 2025, Ooma reported revenues totaling $256.9 million alongside a net loss of $6.9 million. The organization employs roughly 510 individuals and remains committed to expanding its portfolio of products and services across both consumer and enterprise sectors.
Funding
Ooma’s initial capital raise occurred in 2005 with $7.8 million secured. In 2006, investor Sean Parker became involved with the company. The Series B financing round in 2007 brought in $12 million, spearheaded by Worldview Technology Partners and Draper Fisher Jurvetson. This was followed by a Series C round in September 2008 that raised $16 million.
In June 2009, Ooma completed a Series D funding round amounting to $18.3 million, again led by Worldview Technology Partners. By January 2012, additional investments totaling $17.3 million were received from Draper Fisher Jurvetson, Founder's Fund, and others, bringing total funding to $83.3 million.
The company went public in July 2015 through an initial public offering priced at $13 per share, generating $85 million from selling five million shares—a pivotal moment that enhanced Ooma’s market visibility and growth trajectory.
Operations
Ooma’s business operations are structured around two main models: Ooma Telo designed for residential use and a suite of business solutions including Ooma Office, Ooma Office Pro, and Ooma Enterprise.
Ooma Telo
Introduced on October 1, 2009, Ooma Telo provides unlimited VoIP calling across the U.S. The system features Bluetooth connectivity, high-definition voice quality, and a cordless DECT 6.0 handset. Users have the option to transfer their existing landline, VoIP, or mobile phone numbers to Ooma’s service. The Premier plan enhances functionality with capabilities such as Multi-Ring, Do Not Disturb mode, advanced voicemail options, and Caller ID with Name display.
Ooma Office
Launched in 2013, Ooma Office is a cloud-hosted telephone system designed specifically for business use, incorporating features such as conferencing, virtual fax extensions, and extension dialing capabilities. In August 2016, Ooma introduced a mobile app version that functions independently of the base station, providing services like a virtual receptionist, call transferring, local and toll-free numbers, conference bridges, and extension dialing.
In 2020, Ooma unveiled Ooma Connect, a device combining a base station with an adapter that offers wireless internet connectivity alongside its telephony functions.
Ooma Office Pro
Debuting in 2020, Ooma Office Pro expands upon the original Ooma Office by integrating enhanced functionalities including video conferencing, call recording, a desktop softphone application, robocall prevention, and voicemail transcription services.
Ooma Office Pro Plus
Introduced in 2022, the Ooma Office Pro Plus tier builds on the Pro version by adding sophisticated features such as Call Queuing, Hot Desking capabilities, integrations with Salesforce and Dynamics CRM platforms, recordings for Ooma Meetings, shared voicemail boxes, extended scheduling options, call screening, digital call deflection, and automated text messaging—further advancing its unified communications suite.
Ooma Enterprise
First released in 2018, Ooma Enterprise offers a fully customizable UCaaS (Unified Communications as a Service) solution aimed at larger organizations requiring scalable communication systems.
Ooma AirDial
Launched in November 2021, Ooma AirDial serves as a replacement for conventional analog copper phone lines (POTS) used by critical devices demanding highly dependable connections. This includes fire alarm systems, elevator emergency phones, burglar alarms, building access controls, and campus safety phones. This product line broadens Ooma’s presence into essential safety and security communication markets.